Investigation of claims against officers, directors and owners results in lawsuit that generates significant proceeds for Polsinelli creditors of wireless telecommunications company.
A rural provider of wireless telecommunication services filed for protection under Chapter 11 of the Bankruptcy Code in an attempt to sell its assets at fire sale value to insiders of the company. Polsinelli was engaged as counsel to the official committee of unsecured creditors. As a result, the Creditors’ Committee successfully assisted the Chapter 11 debtor in selling its assets at auction for approximately 10 times the value of the proposed sale to insiders. After the sale was complete, the Creditors’ Committee successfully confirmed a Chapter 11 liquidating plan. Polsinelli was retained by the Plan Administrator to investigate and prosecute claims against the current and former officers and directors of the Chapter 11 debtor, as well as the former and current owners of the company.
After extensive investigation and litigation, Polsinelli orchestrated a settlement involving numerous parties that resulted in a significant distribution being made to creditors of the Chapter 11 debtor.
Polsinelli was selected as counsel to the official committee of unsecured creditors after a beauty pageant pitch that involved several different law firms. The creditors relied upon Polsinelli’s extensive experience and successes in representing Creditors’ Committees in Chapter 11, as well as Polsinelli’s competitive rate structure and business-minded approach to representing creditors.
The interview process and engagement involved an experienced team of Polsinelli attorneys from multiple practices including bankruptcy, loan enforcement, corporate and transactional, commercial litigation, and contingency fee litigation. Together with the Creditors’ Committee and the Liquidating Trustee, we successfully:
- Oversaw the sale of substantially all of the assets of the Chapter 11 debtor, which included over 20 FCC licenses and 50 telecommunications towers
- Negotiated and drafted the asset purchase agreement
- Drafted and confirmed a Chapter 11 liquidating plan
- Drafted liquidating trust agreement and represented Plan Administrator
- Conducted a thorough review of the validity, extent, and priority of the alleged liens and claims of the secured lender and various other parties